Court Approval Process for Selling Settlements

Every structured settlement sale in the United States requires court approval. This legal requirement protects settlement holders from decisions that could harm their financial wellbeing.

The Legal Framework

All 50 states have enacted Structured Settlement Protection Acts requiring judicial review of any transfer. The specific requirements vary by state, but all require that a judge find the transfer is in the sellers best interest.

Timeline and Process

After you sign a purchase agreement, the buying company files a petition with your local court. A hearing is scheduled 30-60 days after filing. The judge reviews terms, asks about your reasons, and approves or denies. Most straightforward transactions are approved at the first hearing.

After Approval

Once approved, the court order is sent to the insurance company. They process the transfer and you receive your lump sum within 3-5 business days.